Previous Pa Next Page Page 1 of 3 Question 1 (9 points) Jimmy Inc. bought 30% of Choo Company on January 1, 2019 for $681.000. The equity method of accounting was used. The book value and fair value of the net assets of Choo on that date were $2.274.000. Choo began supplying inventory to Jimmy as follows: Cost to Transfer Amount Held by Year Choo Price Jimmy at Year-End 2019 555,000 $125.000 525.000 2020 $80,000 $160.000 $64.000 Choo reported net income of $322.000 in 2019 and $324.000 in 2020 while paying $66,000 in dividends each year What is the reported balance of investment in Choo Company at December 31. 2020? 19 points) l'Assume the unsold 2019 inventory of $25.000 was sold in 2020 Page 1 of 3 Next